Dogecoin (DOGE) Stuck at Same Level for 11 Days – Why?

For the past 11 days, Dogecoin has been trading in the same range without producing any notable movement in either direction. It looks like the asset is trapped in a crucial support zone, while traders and investors wait for a breakout. However, what could be the next significant change, and why is DOGE not acting?

Three significant support levels can be seen on Dogecoin’s price chart, which has been guiding its movement. At $0.22, where DOGE has been consolidating for almost two weeks, is the most immediate support. This level could act as a springboard for a possible upward move if it holds. The following critical support level is $0.18. At this price point, Dogecoin has historically demonstrated resilience, with robust buying interest halting further declines.

Nevertheless, DOGE may retrace significantly from its prior highs if bearish pressure increases and it moves toward the last significant support level at $0.14. 

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Weak market sentiment: Bitcoin and Ethereum have been encountering resistance zones, and the overall cryptocurrency market has been displaying conflicting signals. DOGE lacks the momentum needed to break out in the absence of a distinct bullish trend.

Declining volume: There is no longer any buying pressure evident in Dogecoin’s trading volume, which has drastically decreased. 

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Any effort to push higher is likely to be rejected in the absence of strong volume. The 50-day and 100-day moving averages are above DOGE’s current price, which supports bearish sentiment. There will not be much upward momentum until DOGE removes these obstacles. How DOGE engages with these crucial support levels will determine its next significant action. 

Buyers intervening and pushing the price above $0.24 might signal a bullish reversal and a retest of the $0.28-$0.30 range. But if DOGE drops below $0.18, the bearish scenario might pick up speed and push the asset closer to the $0.14 mark. Dogecoin is currently in limbo, and traders should closely monitor levels of support and resistance in order to predict the next significant trend change.